Copyright Goodheart-Willcox Co., Inc. Chapter 5 Satisfying the Fashion Market 83
work together in a supply chain and make arrange-
ments for such a one-to-one connection. This informa-
tion pipeline consists of electronic linkages between
trading partners to automatically transmit company-
to-company communication of standard business doc-
uments and transactions. Examples include advance
shipping notices, purchase orders, invoices, product
returns, and other standard documents.
For computers to communicate with each other,
special software is a requirement. The software trans-
lates signals to a common language. After receiving
the messages, they print out on paper at the receiving
location, in the form of the receiving company’s pur-
chase order or other offi document. ficial
EDI technology reduces the costs of clerical work,
data entry, and the printing of forms, since no actual
forms are manually prepared or mailed. This eliminates
paperwork and postage costs, while increasing accu-
racy. It also provides the ability to track goods as they move through the chain,
thus enabling companies to fully automate their order cycle. Firms can monitor
EDI transactions from placement of the initial order through final product deliv-
ery and payment. Data errors are visible and corrections can be instantaneous.
EDI improves the effi of all companies involved. It increases sales ficiency
and profi and it lowers costs. Almost all companies that supply merchan- fits,
dise to major retailers are on EDI linkage systems.
As an example of how a company uses the combined technologies of prod-
uct coding, scanning, and EDI, the following takes place:
1. Textile fi rms set up computer systems that measure, color-code, and
inspect fabric as it comes off the loom.
2. That information transmits to computers at apparel factories before the
bolts of cloth arrive there.
3. Sewing factories only need to scan the bolt tags when the fabric arrives.
4. The fabric moves directly from the delivery truck to the cutting room for
swift processing without any repetition of tasks.
5. Then, computers at sewing plants inform retail stores about production
of their orders.
6. Advance shipping notices tell retailers when specific orders will leave the fi
factory and arrive at store receiving docks.
7. Finally, invoicing, or billing for the materials sent, is also automatically
computer generated.
Companies send EDI transmissions by secure Internet communications.
This business-to-business electronic commerce (B2B EC), which connects com-
panies online, is worldwide. It reduces costs and enables small companies to
compete as easily as large firms because of the need for fewer special systems.
Companies can send web-based EDI business forms and appropriate data to
business partners faster and more accurately. Firms have private websites that
arka38/Shutterstock.com
Figure 5.8 Th e graphic above illustrates the benefi ts—
including reduced inventory costs and increased return
on investment (ROI)—of electronic data interchange (EDI)
among those companies that choose to share documents
and transactions.
work together in a supply chain and make arrange-
ments for such a one-to-one connection. This informa-
tion pipeline consists of electronic linkages between
trading partners to automatically transmit company-
to-company communication of standard business doc-
uments and transactions. Examples include advance
shipping notices, purchase orders, invoices, product
returns, and other standard documents.
For computers to communicate with each other,
special software is a requirement. The software trans-
lates signals to a common language. After receiving
the messages, they print out on paper at the receiving
location, in the form of the receiving company’s pur-
chase order or other offi document. ficial
EDI technology reduces the costs of clerical work,
data entry, and the printing of forms, since no actual
forms are manually prepared or mailed. This eliminates
paperwork and postage costs, while increasing accu-
racy. It also provides the ability to track goods as they move through the chain,
thus enabling companies to fully automate their order cycle. Firms can monitor
EDI transactions from placement of the initial order through final product deliv-
ery and payment. Data errors are visible and corrections can be instantaneous.
EDI improves the effi of all companies involved. It increases sales ficiency
and profi and it lowers costs. Almost all companies that supply merchan- fits,
dise to major retailers are on EDI linkage systems.
As an example of how a company uses the combined technologies of prod-
uct coding, scanning, and EDI, the following takes place:
1. Textile fi rms set up computer systems that measure, color-code, and
inspect fabric as it comes off the loom.
2. That information transmits to computers at apparel factories before the
bolts of cloth arrive there.
3. Sewing factories only need to scan the bolt tags when the fabric arrives.
4. The fabric moves directly from the delivery truck to the cutting room for
swift processing without any repetition of tasks.
5. Then, computers at sewing plants inform retail stores about production
of their orders.
6. Advance shipping notices tell retailers when specific orders will leave the fi
factory and arrive at store receiving docks.
7. Finally, invoicing, or billing for the materials sent, is also automatically
computer generated.
Companies send EDI transmissions by secure Internet communications.
This business-to-business electronic commerce (B2B EC), which connects com-
panies online, is worldwide. It reduces costs and enables small companies to
compete as easily as large firms because of the need for fewer special systems.
Companies can send web-based EDI business forms and appropriate data to
business partners faster and more accurately. Firms have private websites that
arka38/Shutterstock.com
Figure 5.8 Th e graphic above illustrates the benefi ts—
including reduced inventory costs and increased return
on investment (ROI)—of electronic data interchange (EDI)
among those companies that choose to share documents
and transactions.
